Stocks
AI Boom Lifts US Earnings Expectations, Goldman Strategists Say
US companies are set for another strong earnings season, driven by the AI investment boom and windfall profits for energy companies, according to Goldman Sachs Group Inc. strategists.
The team led by Ben Snider expects S&P 500 earnings to surge 22% in the second quarter, which analysts believe is a hurdle that companies should be able to clear.
The key issue for investors will be AI spending outside of big tech companies, known as hyperscalers, and whether all that investment is starting to pay off.
AI infrastructure stocks are set to contribute nearly 60% of S&P 500 earnings-per-share growth in the quarter, with Micron Technology Inc. and Nvidia Corp. accounting for more than 40%, according to the strategists.